VICROADS have admitted a consultation letter about removing a level crossing in Ormond was too political in spruiking the actions of the Coalition government, prompting questions about the government's crackdown on political advertising.

The letter to residents and businesses about plans to remove the level crossing at North Road in Ormond was sent last week. It says that the ''project forms part of the Victorian Coalition government's metro level crossing blitz''.

In the lead-up to the 2010 election the Coalition hammered John Brumby's government for using government ads for political gain. It has tightened rules for communications since the election.

A VicRoads spokeswoman said it was an oversight and that the reference ''was an error and is not consistent with the Victorian Government Communications Guidelines''. ''VicRoads have rectified this error and will ensure that all future communications are consistent with the updated guidelines.''

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New prominent PSO recruitment ads have also called into question the independence of the new advertising watchdog.

In Opposition the Coalition labelled the Brumby government's TV campaigns on transport projects and police recruitment as an abuse and waste of taxpayers' money.

The Coalition also pledged to set up an independent watchdog, headed by a retired judge, to vet taxpayer-funded ads. It was set up last year but does not have a retired judge as its chair, instead former Howard government bureaucrat Greg Williams was appointed.

The Advertising Oversight Committee's terms of reference say it will ensure public funds are not used to ''promote or enhance the electoral prospects of a political party or the government of the day.'' The panel has approved the PSO ads.

Opposition scrutiny of government spokesman Martin Pakula said calling the panel ''independent'' made a mockery of the term. ''Despite his explicit promises of independent oversight of government advertising, Ted Baillieu is now turning departments and agencies into propaganda arms of his government,'' he said.